The market has broken the range trading activity on the lower side by cutting the important support at 5200/17330.
The tired sell off was so severe that it has broken even the lowest low level of the current sell off which was at 5160/
17270. The reason was global cues and we informed our readers well in advance about the same. Even two bearish
gaps have confirmed the medium term down trend for the Indian markets.
In the context of global cues, we can say that the pain is still not over and minimum 2 to 3 percent sell off is not ruled
out in the near term in US markets. If we consider our markets then the dismissal of the weekly lows will drag the
market to the level 5000/16850 soon. By closing the market below the level 5180, which is a part of a silent trading
range between 5180/17350 and 4950/16550 levels since October 2009, we may even expect the fall to continue the
level 4950/16550 in coming few day.
However, while looking at the strength of the past move the market between 4675/15650 and 5400/18050 we can say
the level of 5000 will offer first significant investment opportunity with a long term view. Our advice is to invest "partial
funds" in index based stocks around 5000 levels and with an intention of adding more if it falls further to the next
best support. For traders our advice is to reduce trading long positions.
